Thermax Ltd. share price target

EBITDA margin declined by 346bps YoY to 7% due to higher commodity prices and an increase in other expenses. The company expects margin pressure is likely to sustain as recent FGD orders were booked after 9 months delay and difficulty in price hike due to high competition in chemical business. The current premium valuation and headwinds on margins, implying limited room for further upside in the near term. Therefore, we revise our rating to SELL from Accumulate and value TMX at a P/E of 35x on FY24E EPS with a TP of Rs1,700....

Thermax Ltd. (TMX) reported a healthy revenue growth of 14.5% YoY, led by growth across all segment, while profitability was impacted due to higher commodity price and freight cost. Order inflow grew 57% YoY to Rs24.6bn, including FGD orders worth Rs8bn in Q3FY22. Order book stands strong at...

3QFY22 snapshot: Revenue grew 15% YoY to INR16b, in line with our estimate. EBITDA declined 23% YoY to INR1.1b, 26% below our estimate. Adj. PAT decreased 24% YoY to INR795m, 27% below our estimate. Order...

TMX reported a top-line growth of 29% YoY in Q2FY22 led by robust execution in Environment (101% YoY) & Energy segment (19% YoY). EBITDA margin improved by 53bps YoY to 7.5% due to favourable sales mix, cost rationalisation & operating leverage....

Domestic enquiry pipeline remains strong from Refinery, Cement and Metals, while for exports market enquiry level is improving. Thermax Ltd (TMX) reported healthy Q2FY22 performance, as execution momentum continued across Energy/Environment/Chemical and grew 19.4%/101.2%/12.4% YoY. Healthy ordering momentum in Refinery, O&G, chemical, F&B, pharma, cement etc, resulted in order inflows of Rs18.6bn (up 67% YoY). During the quarter TMX received its 1st order to set up Bio CNG...

* Numbers till FY18 includes standalone business with boiler & heater business of Thermax, which is now classified as discontinued operations from standalone and transferred to its subsidiary TBWES with effect from October 1, 2019. Hence, they will not be reflected in standalone numbers. Instead, they will be reflected in consolidated numbers. Therefore, they will not be comparable. Hence, we have changed our presentation of historical numbers (FY19, FY20) and forward numbers to consolidated and valued accordingly....

Revenue was in line with our estimate in 1QFY22, with a miss (15%) on operating profit. EBITDA margin stood at 6%, lower than our estimate of 7%, on account of higher commodity costs, an elevated freight rate, and lower productivity owing to COVID-led disruptions. Owing to a miss on operating profit, adjusted PAT came in 21% below our estimate. Order inflows almost tripled to ~INR17b on a low base YoY. However, it stood 13% higher sequentially, with robust orders from Refinery, Cement, and Steel sectors. Order book stood at INR61b (+17% YoY, with a book-to-bill...